States

States Giving Performance Pay by Doling Out Bonuses

By Michele McNeil — September 06, 2006 4 min read
  • Save to favorites
  • Print

In Texas this school year, teachers have money riding on their students’ achievement.

Up to $10,000, in fact, under a new program designed to reward high-performing teachers in high-poverty districts, and encourage other teachers to do better.

Though many states have debated changing the way teachers are paid, Texas is one of just three that have succeeded in linking compensation for individual teachers with student achievement. At the end of this school year, teachers in about 1,000 Texas schools will be eligible for cash bonuses, which will likely range from $3,000 to $10,000, for boosting student performance.

The state has set aside $100 million for these rewards, which will filter down to more than 10 percent of Texas schools.

The issue of pay for performance—or merit pay, as it used to be called—isn’t new, but states like Texas are eyeing bonuses as the easiest way to tie teachers’ paychecks to test scores. Unlike revamping a whole pay system, bonuses don’t carry the threat of reducing teachers’ paychecks. So Florida, Texas, and Alaska turned to cash bonuses this year.

But whether an end-of-the-year cash bonus will translate into student success is another matter.

‘Big Mistakes’

“There’s no question we need a new professional compensation structure, but we’re seeing big mistakes of the past repeated,” said Barnett Berry, the president of the Hillsborough, N.C.-based Center for Teaching Quality. “States are still clearly overusing the test to gauge teacher effectiveness. If people think a 5 percent salary bonus is really going to make a big difference, they really don’t understand the teaching profession.”

Yet more states will try this approach during the 2007 legislative sessions. New Mexico Gov. Bill Richardson, who is up for re-election this year, will make it a priority during the next legislative session, said Gilbert Gallegos, a spokesman for the Democrat. Details, however, are still being worked out.

Maryland Gov. Bob Ehrlich, a Republican in a tough re-election battle, announced last week that he wants to spend $800,000 next budget year to craft a new “quality compensation” system for his state’s teachers. Whether the new pay system—which would be voluntary for districts—would involve bonuses or an alternative salary structure is still to be decided, said spokesman Henry P. Fawell.

In the past decade, Arizona, Minnesota, and North Carolina have enacted different types of programs that tie teacher salaries, in part, to student achievement. School systems in Denver and Houston have also adopted performance-pay programs for teachers. (“Test-Tied Bonuses to Take Effect in Houston,” Jan. 18, 2006.)

‘Meaningful’ Amounts

No matter what proponents call such ideas—bonuses, merit pay, or performance pay—unions are still generally opposed to them. In Texas, teachers’ unions unsuccessfully fought the new bonus program.

“First, we need to do across-the-board pay raises, and then we can come back and look at things that would be fair for everyone,” said Rob D’Amico, a spokesman for the Texas Federation of Teachers, a 53,000-member affiliate of the American Federation of Teachers.

The Texas program is aimed at the schools with the highest percentage of economically disadvantaged students. About 1,170 of the state’s 7,900 schools were eligible to take part, and 1,098 schools have told the state education department they want to do so. Individual districts will work with teachers to figure out how they’ll evaluate performance and distribute money. Each plan, which must be submitted to the state for approval, must be crafted with significant input from teachers and include at least three letters of support from teachers, said Debbie Graves Ratcliffe, a spokeswoman for the Texas Education Agency.

Next summer, the state will award grants to schools with approved plans based on performance during this school year. The awards will range from $40,000 for the smallest schools to $200,000 for the largest. The schools will then hand out the bonuses to individual teachers based on the approved plans. Seventy-five percent of the money must go to the classroom teachers whose students scores go up. The remaining money can go to other teachers and staff members, such as reading specialists and administrators, who played a role in students’ success.

The TEA is recommending the bonuses range from $3,000 to $10,000 per teacher.

“We want it to be large enough to be meaningful,” Ms. Ratcliffe said.

Schoolwide Rewards

In Florida and Alaska—the two other states that enacted bonus programs for this school year—the rewards apply statewide, and not only to high-poverty schools.

The Florida legislature this year set aside $147.5 million for its Special Teachers Are Rewarded plan, or STAR, which replaces an earlier, unsuccessful performance-pay system. The top 25 percent of teachers in districts that choose to participate will be rewarded with cash bonuses next summer equaling 5 percent of their pay. For a teacher making $40,000, that’s a $2,000 bonus. The money will be doled out to individual teachers based on an evaluation system devised by each district and its teachers’ union and approved by state officials.

Alaska’s new program follows an older model of rewarding whole schools. The three-year program rewards all staff members in a school that shows improvement, based on a complicated formula, or in the case of an already high-performing school, sustained achievement. Certified staff members will receive $5,500, while noncertified staff, including classroom assistants and secretaries, receive $2,500. District-level personnel, such as reading specialists who serve multiple schools, are also eligible, said Roger Sampson, the state’s commissioner of education and early development.

“We believe that if we’re going to get substantial improvement,” Mr. Sampson said, “everybody in that school is responsible.”

A version of this article appeared in the September 06, 2006 edition of Education Week as States Giving Performance Pay by Doling Out Bonuses

Events

School & District Management Webinar EdMarketer Quick Hit: Build Campaigns That Engage K-12 Leaders
We’ll share what’s resonating with Education Week’s K-12 audience based on user behavior across platforms and other proprietary data.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Assessment Webinar
Measuring What Matters: How District Leaders Are Redefining Student Assessment
In this panel discussion, district leaders and systems experts will examine the gap between the outcomes we want and the systems in place.
Content provided by Otus
Early Childhood Webinar Selling Into Early Learning: New Survey Data and Strategies for Marketers
Selling into PreK? Get fresh EdWeek Research Center data and strategies to position your products and reach the right early learning buyers.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

States Which Education Issues Are on the Ballot? Look Up Your State in Our Guide
Education Week reviews what’s on ballots in all 50 states and the District of Columbia.
1 min read
An, " I Voted Today," sticker is stuck to an information sign at Olbrich Gardens, Aug. 11, 2026, in Madison, Wis.
An "I Voted Today" sticker on a sign on Aug. 11, 2026, in Madison, Wis. The race for control of Congress is the highest-profile election battle underway this fall. But there's a lot on the ballot in every state that matters for schools, the policies they have to follow, and their budgets.
Nam Y. Huh/AP
States A Unique K-12 Ballot Initiative, and Other 2026 Election Highlights
One state would require 'Spar-Spangled Banner' broadcasts in schools. Others would limit taxes.
10 min read
School building at the center against a green grid background. Neighborhood homes are on both sides of the school and are made up of tax forms that are collaged together. Some of the forms show things like "School District Residency" and "File a separate form SD 100 for each taxing school district in which you lived during the taxable year".
Illustration by Taylor Callery for Education Week
States EdWeek's Guide to the 2026 Elections: Where Education Is on the Ballot
Education Week reviewed what's on the ballot in all 50 states and the District of Columbia.
Row of three school desks. Each has a different color seat. One is red, one is white, and the third desk has a blue seat. Each desk has a voting booth on top with the familiar voting "American flag" and the word "VOTE".
Illustration by Taylor Callery for Education Week
States Court Lets a State Law Limiting Race, Gender Classroom Discussions Take Effect
The 2021 Oklahoma law was part of a wave of state laws limiting classroom race and gender discussions.
Curtis Killman, Tulsa World, Okla.
•
2 min read
EDUCWeek TracyByrd 23
Books in a Minneapolis high school classroom are seen on Jan. 22, 2026.
Caroline Yang for Education Week